Some tenants don’t want to deal with furnishing an apartment or care about the decor they want. So, they are going to look for a fully furnished property that has all the fixtures necessary for a comfortable home.
Properties that are partially furnished typically include the essentials: a couch, a bed, a table, and a few chairs, as well as a few appliances or smaller pieces of furniture.
At Keyrenter Premier we believe considering renting your furnished home is a good idea. This information should assist you in deciding whether to rent your apartment furnished or unfurnished if you’re having trouble deciding.
Considerations You Need to Make
You might leverage the kind and number of furnishings in your furnished apartment to draw in different tenants. For instance, an apartment furnished with opulent furnishings, a big TV, and a complete set of kitchen appliances is perfect for a beach home or an executive staying in town for a few months.
The optimum use for this kind of rental, which comes with all the amenities and renovations, is for brief, expensive leases. Keep in mind these possibilities and the possibility that you will eventually need to replace or fix some of the furniture.
Why Rent a Furnished Property?
A furnished apartment may be better in some circumstances than an unfurnished one. If you only want to stay in the property temporarily, you might not want to pack and move bulky furniture that you’ll ultimately have to move again.
College students, people moving temporarily for work or medical reasons, and individuals who lack furnishings, such as first-time tenants may find a furnished apartment to be suitable.
Pros of a Furnished Property
Attract More Renters
You reduce the hassle associated with moving by offering furnished properties. With furnished properties, tenants do not need to spend hundreds of dollars on furniture shopping or rent a large moving truck. Tenants may enter their new residence immediately as an alternative.
Increase Your Rent
Your rent will certainly rise if your property is furnished. Renters will pay more if there are furnishings in the unit. Properties with furniture bring in more money than those without. The rent on a long-term rental can be up to twice as much.
Charge Higher Security Deposit
The capacity for you, the landlord, to gain security in the form of a security deposit can also increase by furnishing your tenant’s unit with a lot of furniture. If there is any damage or maintenance to the furniture or other items, the security deposit will give you the security and money you need.
Target a Specific Market
Advertising is easier when you have a furnished property. This is because you know your target market based on your furnishings and location.
Cons of Furnished Apartments
Risk of Damage by Tenants
A tenant is more likely to damage an item when they are not responsible for fixing or replacing it. The risk of damage increases with the amount of furnishings in a unit. On the other hand, owners of unfurnished properties need to worry about losses far less frequently.
Most Renters are Temporary
Short-term renters frequently choose furnished apartments. As a result, there will be more turnover in your real estate. So, your property is more likely to be vacant, which will result in a loss of rental income. You’ll need to spend extra money between tenants on upkeep, preparation, and cleaning. Each time a tenant vacates the property, more money is spent on marketing it.
It’s More Costly
The price of investing in furniture and equipment can quickly mount. We advise you to set a budget as a result appropriately. Not to mention that you must budget for maintenance and replacement costs when renting a home with furniture. Due to wear and tear, you will undoubtedly need to replace or repair some of your furniture every few years.
Whether or not you choose to furnish a house should be influenced by the market in which it is situated. Be aware that furnishing your apartments will present some challenges, such as shorter leases, more maintenance costs, and a higher rate of renter turnover.
But a furnished apartment might be the ideal location for someone to temporarily call home if the circumstances are appropriate.
Furnished properties can bring in more money, provide highly targeted services, and even open up new rental markets. Deciding to furnish your rental property is not simple. Property managers should consider asking a property manager for guidance before deciding whether or not to furnish.
At Keyrenter Premier Residential Property Management, we are dedicated to providing thorough property management services and exceptional customer services to real estate investors and owners at every stage of the real estate investment journey, from buying your first rental properties to growing your rental portfolio.